Please check out the social goods page to see goods that could be provided privately but are treated as public goods.

examples national defence and atmosphere

The argument that some infrastructure goods must be provided by the state

PUBLIC GOODS argument - private sector would not provide

Non excludable and non rivalrous but most is actually excluable like toll boths, but light houses are not

non rivalrous means

Overall a weak argument

MONOPOLY

If the state did not provide the goods the private sector would have a monopoly

Firms would overcharge, a single seller can raise prices at will. However if you charge too much there will be competition, from either substitutes or competitors who can now compete. Regulation creates barriers to and creates monopoly

Is state monopoly any better than a private one?

EQUALITY

Privatising would exclude certain groups, the danger is - customers might not buy enough to make transaction viable for the seller. This argument doesn't hold

potentially a way around this is a subsidy for these customers, as the government is already subsiding them directly).

Markets good at catering to segmented and niche needs.

Equality isn't everything, there can be other aims - too much equality impacts the economy

Government already protects big business and restricts choices for poorer people so are not really interested in equality.

ENVIRONMENT

The private sector would create pollutionHowever states are one of the biggest casues of pollution (think communist russia)

Social costs exceed private costs producing negative externalitiesBut costs often the result of state interventionAnd how can you calculate social costs

State intervention is not perfect and never will be.

Cures can be worse than the disease - as policy's can mis-price, and bow to certain industries, pushing the pollution overseas.

SHORT TERMINISM

The private sector doesn't think 40 years ahead. "Only the state can make long term strategic plans"

However risks don't disappear with government projects, just they are loaded onto taxpayers and consumers.